Market Analysis
Houston Rental Market
Rental investment market data and analysis · Updated November 2026
Median Home Price
$366,000
Average Monthly Rent
$2,234
Estimated Cap Rate
7.3%
Rent-to-Price Ratio
0.6%
Below 1% Rule
Rent ÷ price by zip code
0 of 4 clear the 1% rule · November 2026
| Zip | Median price | Median rent | Rent ÷ price |
|---|---|---|---|
| 77002 | $265,000 | $1,850 | 0.70% |
| 77095 | $334,000 | $2,190 | 0.66% |
| 77024 | $398,000 | $2,099 | 0.53% |
| 77008 | $600,000 | $2,795 | 0.47% |
Context · FRED home price index
Market Trends
Houston metro area — % change since 2018
Home Prices
+58.0%
Rent Index
+27.3%
Average Rent by Bedroom
| Bedrooms | Avg Rent |
|---|---|
| Apartment | $1,521/mo |
| Multi-Family | $1,948/mo |
| Condo | $2,170/mo |
| Manufactured | $2,450/mo |
| Townhouse | $2,619/mo |
| Single Family | $3,750/mo |
Sample Investment Analysis
Based on median price + average rent, 20% down, 6.8% rate, 30yr
Purchase Price$366,000
Down Payment (20%)$73,200
Monthly P&I$1,909
Monthly Rent$2,234
Est. NOI$16,085/yr
Est. Cash Flow-$568/mo
Cash on Cash-8.5%
The Houston market is cash-flow negative at median prices. Look for properties 15-20% below median or with value-add potential.
What Investors Should Know About Houston
- 1Strong cap rates above 7% — excellent cash flow potential
- 21% Rule fails at median prices — need rent of $3,660/mo to pass
- 3Above-average rents support strong gross income per unit
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